Very little price action has been reported in the Danish steel market this month. A seasonal recession in purchasing was widely expected. Most Danish steel buyers have chosen to follow conservative procurement strategies, keeping their August purchases to a minimum.
The pace of price growth may have stalled, but the Danish market, unlike its southern European counterpart, has managed to fend off any erosion threats over the past four weeks.
Supply chain participants in Denmark have reason to be optimistic in the post-holiday period. Market sentiment remains positive. The recent decline in activity is expected to be a temporary phenomenon rather than part of a long-term trend.
It is healthy for many industries to make heavy steel consumption. Significant investments in local infrastructure projects such as hospitals and highways are increasing the demand for steel, especially for long products. Despite the high cost of steel and other commodities, activity levels in the construction sector are expected to remain stable. The use of plates is also strong.
The primary concern for domestic buyers is the ongoing material shortage from regional steelmakers. Delivery times are longer for most steel products. Spot availability is low. Many Danish steel buyers place orders based on allocated volumes.
New hot rolled coil orders are placed for December/January delivery. Cold rolled and hot-dip galvanized coil will not be available from European producers until the first quarter of 2022. Availability is better for long products, but stock takings have been discontinued. October delivery is usually priced by regional suppliers.
Non-European supply is limited by current EC safeguards and anti-dumping duties. Asian flats arriving in Denmark reportedly offer little price advantage over regional offerings, but the promised delivery time is comparable in most cases. Competitive quotations from Russian suppliers seem to have been withdrawn. This is partly due to the introduction of a new export tax.
A seasonal recession in purchasing was widely expected. Most Danish steel buyers have chosen to follow conservative procurement strategies, keeping their August purchases to a minimum.
The pace of price growth may have stalled, but the Danish market, unlike its southern European counterpart, has managed to fend off any erosion threats over the past four weeks.
Supply chain participants in Denmark have reason to be optimistic in the post-holiday period. Market sentiment remains positive. The recent decline in activity is expected to be a temporary phenomenon rather than part of a long-term trend.
It is healthy for many industries to make heavy steel consumption. Significant investments in local infrastructure projects such as hospitals and highways are increasing the demand for steel, especially for long products. Despite the high cost of steel and other commodities, activity levels in the construction sector are expected to remain stable. The use of plates is also strong.
The primary concern for domestic buyers is the ongoing material shortage from regional steelmakers. Delivery times are longer for most steel products. Spot availability is low. Many Danish steel buyers place orders based on allocated volumes.
New hot rolled coil orders are placed for December/January delivery. Cold rolled and hot-dip galvanized coil will not be available from European producers until the first quarter of 2022. Availability is better for long products, but stock takings have been discontinued. October delivery is usually priced by regional suppliers.
Non-European supply is limited by current EC safeguards and anti-dumping duties. Asian flats arriving in Denmark reportedly offer little price advantage over regional offerings, but the promised delivery time is comparable in most cases. Competitive quotations from Russian suppliers seem to have been withdrawn. This is partly due to the introduction of a new export tax.
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